CONCURRENT AUDIT FOR THE FY STATE & DISTRICT HEALTH SOCITIES UNDER NRHM

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1 Appendix-B TOR (Terms of Reference) FOR CONCURRENT AUDIT FOR THE FY STATE & DISTRICT HEALTH SOCITIES UNDER NRHM Here is TOR for the monthly audit to be conducted at District Health Society (DHS) and State Head Quarter. The account comprises the RCH activities, NRHM Additionalties, Immunization, Pulse polio, RNTCP, NLEP, NCBP, IDSP, NVBDCP, NIDDCP and Flurousis control programme, Non-communicable Diseases control Programmes (NCDs) etc. activity funds and any other activity funds which received by the DHS. The concurrent audit should also include the audit of funds given to other agencies viz. PWD, Blocks, Jila Panchayat, Ayush, Medical colleges etc by the DHS. The auditors are requested to please go through these while conducting the audit so that adequate monitoring at District & Block level can be done in a standardized manner. Concurrent Audit Report of a District Health Society should contain the following financial statements and documents: Duly filled in Checklist provided in the guidelines Financial statements (Audit Report) should comprise of the followinga) Audited Trial Balance b) Audited Receipt & Payment A/c c) Income & Expenditure A/c d) Audited Statement of Expenditure (SOE) in form of monthly FMR. e) Bank Reconciliation Statements f) List of long outstanding Advances Observations and Recommendations of Auditor particularly covering the following aspects: o Deficiencies noticed in internal control o Suggestions to improve the internal control o Extent of non-compliance with Guidelines issued by GOI/SHS o Action Taken by State Health Society on the previous audit observations, along with his observations on the same Preparation & Finalization of Consolidation of all audited accounts of State including NDCPs (TB, Leprosy, Malaria, Iodine, IDSP, Blindness, Fluoursis, NCDs etc on monthly basis. Notes: 1. Soft copy of the state audit report needs to be submitted by the Auditors to SHS at the state level. 2. The Director (Finance) at the Centre may call for the concurrent audit report of any district/ state. 3. The reports at both the state and district level will include consolidated report of RCH, Additionalities under NRHM, Immunization and NDCPs (i.e. Malaria, TB, Leprosy, IDSP, Blindness, NIDDCP, Florousis, NCDs etc.) In addition, it should also include instances of misappropriation/ unauthorised diversion of funds as noticed during the audit.

2 GUIDELINES CUM CHECKLIST FOR AUDIT OF DISTRICT HEALTH SOCITIES, NRHM Note: If the answer for any of the item below is adverse (i.e., NO ), please give details on a separate sheet. Sr.no Questionnaire Remarks A. REQUIREMENTS AS PER GOI GUIDELINES 1. Whether FMRs are based on the books of accounts? 2. Whether advances are shown as expenditure in the FMRs? 3. Whether FMRs are being prepared in the format prescribed by GOI? 4. Whether FMR reporting is being done on time every quarter? 5. Whether the concurrent auditor has audited the quarterly FMR? 6. Whether Statement of Fund Position is being sent along with FMRs? 7. Whether monthly Bank Balances Position Reports are sent to GOI regularly in the prescribed format? 8. Whether the concurrent auditor has audited the Statement of Fund Position? 9. Whether Provisional Utilization Certificates for the last financial year has been sent to GOI? 10. Whether the Provisional Utilization Certificates sent to GOI have been audited by concurrent auditor? 11. Whether statutory annual auditor has been appointed on the due date, i.e., 31 st March. 12. Whether the appointment of statutory auditor has been intimated to GOI? 13. Whether Delegation of Administrative and Financial Power has been done as per the GOI Guidelines? 14. Whether Financial and Accounting unification has taken place in the SHS as per GOI notification No. 107/FMG/ dated ? 15. Whether the last annual financial statements were prepared in the format prescribed by GOI? 16. Whether the SHS has sent the Action Taken Report (ATR) on the last statutory audit report of the DHS to the SHS? B. MAINTENANCE OB BOOKS OF ACCOUNTS 1. Whether books of accounts are maintained on computerized software? Note: If accounts are maintained on standard accounting software, strike out the points not applicable in the relevant rows below. 2. Whether cash book is being maintained if the format prescribed? (Annexure A ) 3. Whether separate Cash Books with Cash and Bank Balance on Cash System of accounting are being maintained properly for different projects (RCH, NRHM, SIP etc.) and are up-to-date? 4. Whether Cash Book is closed daily by 4 p.m. and is authenticated and duly signed by authorized signatory on daily basis? 5. Whether the Society is carrying heavy cash balances i.e. exceeding Rs. 5000/-? 6. If the answer to above is in positive, please give the no. of cases and the reasons therefore. 7. Whether appropriate insurance cover is there for excess cash held by the State Health Societies? 8. Does the physical cash tallies with that entered in Cash Book? Give dates on which verified and the cash balance with SHS on that day. 9. Whether Petty Cash Book is being maintained properly? 10. Whether Cheques issued register is being maintained properly?

3 11. Whether Registers of Bank Drafts received and Bank Drafts Issued are being maintained? 12. Whether updated pass book / bank statement is available? 13. Whether Bank reconciliation is prepared on a monthly basis as per Annexure-F? 14. Whether proper explanation has been given by the persons responsible regarding unreconciled entries? Please give detailed list of unreconciled and unexplained entries. 15. Are Ledgers being maintained properly? 16. Whether Journal register maintained? 17. Whether Budget Receipt & Control Register is being maintained in the format given in Annexure B? 18. Whether Register for Advances maintained as Advances given - to District Health Societies - to Staff, - to Contractors/suppliers, and - TA/DA advance - NGOs/ Other voluntary agencies 19. Whether Register for Staff Payments maintained? 20. Whether Stock Registers are being maintained properly for: Civil Works Machinery & Equipment Furniture & Other non-consumable articles Register for drugs & medicines Register for consumable articles 21. Is register of Investments being maintained properly? 22. Whether Dispatch Register maintained properly? 23. Whether Office attendance register is there and maintained properly? 24. Whether all the files of the Society are systematically numbered and recorded in the File register? C. RECEIPTS & INCOME 25. Whether DD received register is being maintained properly? 26. Whether all the receipts have been recorded in DD received register and Bank book with date and sanction nos.? 27. Whether Grants received have been recorded under proper heads according to the purpose for which it was received? eg. towards RCH flexi pool, Pulse polio, EC-SIP, DFIDetc. D. PAYMENTS & EXPENDITURE 28. Whether there is any significant delay in sending the funds to districts after their receipt from GOI? 29. Whether all the vouchers are checked for the payments made? (Check all Vouchers above Rs. 10,000/- and test check remaining vouchers). 30. Whether vouchers have been filled properly and complete in all respect? 31. Whether all the vouchers are scrolled or not and entered into the Cash/Bank Book properly? 32. Whether all vouchers are supported with appropriate documentary evidences?

4 33. Whether necessary approval from appropriate authority has been taken for expenditures made? 34. Whether all the approvals are within the sanctioning powers of the sanctioning authority? 35. Whether procedure for obtaining the sanctions has been followed? If no, pl specify the no. of cases in which it is not followed? 36. Whether expenditures are classified into Capital and Revenue properly? 37. Whether expenses are debited to proper activity for which it was given? 38. Whether all the payments have been classified into as- - Disbursements out of Grants-in-aid received from a) RCH Flexible Pool b) Mission Flexible Pool c) Routine Immunization d) Pulse Polio Immunization e) NDCPs Programmes such as TB, Malaria, Blindness etc. f) Any other grants 39. Whether the amount is been actually utilized for the purpose for which it was disbursed? If no, pl. give details. 40. Whether there is any deviation between the amount of expenses shown as per Income & Expenditure and as per FMRs submitted by State Health Society to GOI? 41. If yes, quantify the difference activity wise. E. ASSET SIDE a) Fixed Assets 42. Whether fixed assets register has been maintained in the prescribed format? (see Annexure C ) 43. Is the procedure for purchase of Fixed Assets being followed? Report deviations if any. 44. Does physical stock tallies with that recorded in register? b) Advances 45. Whether Advances are given after following required procedure? 46. The purpose for which advance was given comply with the bye-laws? 47. Whether Advance tracking register is maintained properly? (format as per Annexure D ) 48. Specify whether an Age analysis of Advances has been maintained as per format given? (Annexure E ) 49. Whether there are huge unadjusted advances (say more than one month)? 50. If the answer to above is affirmative please give details of such unadjusted advances and the reasons for not adjusting the same. F. LIABILITIES SIDE a) Grants/ Funds Received 51. Whether grants-in-aid received have been properly classified as that received from GoI towards- RCH-II Flexi pool Mission Flexible Pool Routine Immunizatiuon Pulse Polio Individual NDCPs Others (specify) b) Capital Fund 52. Whether Capital Fund Account has been created to the extent of fixed assets

5 purchased and capitalized? G. STATUTORY REQUIREMENTS a) Tax Deducted at Source (T.D.S) 53. Whether T.D.S has been deducted appropriately wherever required? 54. Whether tax has been deducted at source at the rates prescribed? Give list of cases where tax has not been deducted or has been deducted short. (for rates of deduction of tax refer Annexure F ). 55. Whether quarterly returns of T.D.S in the form prescribed have been filled in time? If not, state reasons. b) Other requirements 56. Whether the Society is registered with Income Tax Authorities for exemption from paying Income Tax under relevant section/s? ANNEXURE A - CASH BOOK RECEIPTS Date Particulars Party Name Opening Balance b/f Activity Head L/f No. Amount PAYMENTS Date Particulars Party Name Activity Head L/f No. Amount Total Receipts Grand Total Total Payments Grand Total ANNEXURE B BUDGET CONTROL REGISTER Date Activity/Particulars Approved Budget Grants in aid Recd. Total Budget Recd. Bal. Budget Funds released Unspent Funds avail. ANNEXURE C - ASSET REGISTER Date Vouch er no. Particulars Location Asset Quantity Asset Cost At the beginning of the year (1) Addition (2) Deletion (3) Total Qty. (4) Cost at the beginning of the year (5) Addition (6) Deletions (7) Total Cost at the End of the Year (8)

6 ANNEXURE D - FORMAT OF ADVANCE TRACKING REGISTER Name of Authorized Person- Date Particulars To Whom given Activity I Activity II Activity III Cheque no & Date Amount Adjustment Details Balance Advances Date Amount adjusted Age Advances pending for less than 1 year Advances pending for more than 1 year but less than 2 years ANNEXURE E AGE ANALYSIS OF ADVANCES Name (To whom Advance Given) Number of advances Advances pending for more than 2 years Annexure F : Bank Reconciliation Statement as on Date : Name of the State/District Health Society : SB A/c No Advance outstanding S. No Particulars Schedule Reference Amount A. Balance as per Cash Book (as on date...) B. Add: i. Cheques issued but not yet presented for payments into bank. ii. Credit entries made in the bank Pass book but not shown in the cash book (Such as bank Interest) Iii Other reasons Sub-Total (B) C. Less: i. Cheques deposited into Bank but not yet credited into the Saving Bank Account of the SHS / DHS ii. Bank charges debited in the bank account but not accounted for in the cash book iii Other reasons Sub Total(C)) Balance as per Pass Book/Bank Statement (A + B C) Prepared by Examined by DAM, DPM, CMO Concurrent Auditor Date :

7 For State Programme Management Support Unit (To be compiled by the Monthly Auditor of the State Health Society) FORMAT FOR MONITORING DISTRICT HEALTH SOCIETIES ON THE BASIS OF MONTHLY CONCURRENT AUDIT REPORTS Month/Year Note: This format will be based on district reports received in Appendix-II. S.No. Name of the District Concern areas Recommended corrective action

8 EXECUTIVE SUMMARY TO BE SUBMITTED TO FMG, MOHFW, GOI BY THE STATE PROGRAMME MANAGEMENT SUPPORT UNIT, STATE HEALTH SOCIETY Name of the State For the Quarter (due dates: 31 st July/ 31 st Oct./ 31 st January / 30 th April) / Year NOTE: Based on the three monthly reports, this report has to be submitted along with the Quarterly Financial Monitoring Report. Part-A: State level: 1. Whether the Quarterly FMRs and Statement of Fund Position are based on books of accounts. 2. Whether the Quarterly FMRs and Statement of Fund Position are audited by the concurrent auditor? 3. Whether books of accounts of SHS are computerized? 4. Whether there is any significant delays in sending the funds to Districts, after their receipt from GOI? 5. Whether the posts of State Finance Manager and State Accounts Manager are filled up? If vacant, since when? 6. List down the advances which are outstanding for more than a year. 7. Whether audit observations of the concurrent auditor and statutory auditor have been complied with? 8. Whether Action Taken Report on statutory audit report has been submitted to GOI? 9. Whether unification of financial and accounting processes as per GOI Notification No. 107/FMG/ dated has been completed? 10. Whether delegation of Administrative and Financial powers have taken place as per GOI guidelines (circulated vide D.O. No.118/RCH-Fin/ dated 1 st May, 2007). Part-B: District level: 1. Name of the Districts where monthly concurrent audit has not taken place. 2. Name of the Districts where books of accounts are not computerized. 3. Name of the Districts where Cash Books are not being maintained/closed on a daily basis. 4. Name of the Districts where bank reconciliation is not being done on a monthly basis. 5. Name of he Districts which have not submitted the Statement of Fund Position in the last three months. 6. List down the number of advances and total amount involved District-wise which are outstanding for more than a year. 7. Name of the Districts which have not submitted FMRs/SOEs in the last three months. 8. Name of the Districts where the SOEs/FMRs are not being submitted in prescribed format. 9. Number of Rogi Kalyan Samities (district-wise) where last annual audit has not been done. 10. Number of Districts where unification of finance and accounting processes has not taken place as per GOI guidelines. 11. Number of posts of District Accounts Manager which has been vacant for more than 3 months. 12. Number of Districts where unification of financial and accounting processes as per GOI Notification No. 107/FMG/ dated has not taken place. 13. Number of Districts where Delegation of Administrative and Financial powers have not taken place as per GOI guidelines (circulated vide D.O. No.118/RCH-Fin/ dated 1 st May, 2007). Part-C: Pending issues: 1. Whether the issues raised in the last Quarterly Executive Summary have been addressed? List down the details of major pending issues. (S/d.) (S/d.) CONCURRENT AUDITOR, STATE HEALTH SOCIETY DIRECTOR (FINANCE ) / MISSION DIRECTOR)

Odisha State Health & Family Welfare Society (OSH&FWS)

Odisha State Health & Family Welfare Society (OSH&FWS) Department of Health & Family Welfare, Government of Odisha Annex Building of SIH&FW, Nayapalli Unit-8. Bhubaneswar Email id: fmio.nrhmorissa@gmail.com,